I can't think of any others.
It's an overpriced market, which is why I have so much money in Phoenix. Last summer, I was like a kid in a candy store buying all kinds of grossly underpriced stocks, but today it's hard to find a good deal.
Macromedia is like Phoenix. They invented an industry and have dominated it from the beginning. They got their start on the Mac and have branched out to Windows. The Mac revenue is dying, but the company is fundamentally sound and the Windows side is growing fast. They're worth about 20, but the Internet frenzy last year drove them to 60.
Meridian Data is like Novell 10 years ago, so you'd be a better guy to look at it than me. Last summer, they tried to exit the hardware business, but they found that their customers wanted one-stop shopping for HW/SW. Their revenues went down due to the HW exit and their profits and margins went up. They'll earn $0.50 in 1996 and $0.60 in 1997, so profits are growing, although at a slower rate than Phoenix. However, they have $4/share in cash and the price is 6 3/4. They can make their EPS grow as fast as Phoenix simply by buying back shares.
I can't think of any company as thinly traded as Phoenix. I didn't think it was even possible. I don't know of any other companies growing at a 40% rate that have a 20 P/E.
You can buy several companies near book value that are have a good position, but won't show earnings increases for another 6 months. That's why I bought AMD last summer and fall and the market bid it up in advance of the earnings increases. |
